1) How much do you require to invest today in order to include $247 at end of 17 years if you are certain to earn the interest at the rate of 7%, if it is given that interest is compounded quarterly? What must you be keen to pay in order to receive $549 annually everlastingly, if you need 5% per year on the investment?
2) Determine future value of quarterly payments of $518 for 14 years at 4 percent? Determine the number of years which will take to raise your money from $4,916 to $6,290 if you can earn the interest of 19% compounded quarterly?
3) Assume that after you graduate you make a decision that finance was best thing that has ever took place in your lives so your class comes to a decision to award a chair in Finance Department. You wish your donation to give $50,000 annually to anything professor holds chair. You wish the chair to persist indefinitely. If interest rates are 10%, compute the money that your class require to raise today for this worthy project?
iv) Can’t be find out from the given information
v) None of the given answers is right.